Document background
The Investment Club Agreement is a crucial document used when individuals wish to form a collective investment vehicle under German law. It establishes the legal framework for pooling resources and making joint investment decisions while maintaining compliance with German regulatory requirements. The agreement typically covers essential aspects such as membership criteria, capital contributions, investment strategies, governance structures, and profit distribution mechanisms. It's particularly relevant in situations where private investors want to combine their investment capacity while maintaining more control and flexibility than traditional investment funds offer. The document must comply with German civil law (BGB), financial regulations, and where applicable, the Investment Code (KAGB). This agreement is essential for documenting member relationships, establishing clear decision-making processes, and protecting all participants' interests while ensuring regulatory compliance.
